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mainnet and what is mainnet with spider web emoji

Learn what is mainnet and how it works πŸ“–

A mainnet is a blockchain infrastructure that has been fully constructed and allows users to send and receive bitcoin transactions or any other kind of digital data that is recorded on a distributed ledger.

To further expand, when a blockchain protocol is completely built and implemented, or when cryptocurrency transactions are broadcast, validated and stored on a distributed ledger technology, it is referred to as being on the mainnet (blockchain).

Mainnet currencies like Bitcoin (BTC) have monetary value and are used for transactions as opposed to the other networks which are only used for testing. For testing purposes, the testnet is used. It can be described as an unfinished version of the mainnet’s network that runs in parallel.

Developers often utilise a testnet to test and debug all of a blockchain’s features to make sure the system is secure and prepared for the mainnet’s full launch.

Because mainnet currencies have monetary value, in order to create that value in the first place, a team will set up an Initial Coin Offering (ICO) to assist in raising funds and expanding their community before full launch. The Initial Coin Offering (ICO) can be structured in several ways:

  • Static supply, static price πŸ‘‰πŸΌ supply determines funding
  • Dynamic supply, static price πŸ‘‰πŸΌ funding determines supply
  • Static price, dynamic supply πŸ‘‰πŸΌ set price and fixed supply from the beginning